PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           12 December 2000                   
	DOCKET NUMBER:   AR2000047429

	I certify that hereinafter is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in the case of the above-named individual.  

	Mr. Carl W. S. Chun		Director	
	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Mr. Fred N. Eichorn		Chairperson	
	Ms. Lana E. McGlynn		Member	
	Mr. Harry B. Oberg		Member	

	The applicant and counsel if any, did not appear before the Board.

	The Board considered the following evidence:

	Exhibit A - Application for correction of military 
                records
	Exhibit B - Military Personnel Records (including
	            advisory opinion, if any)

FINDINGS:

1.  The applicant has exhausted or the Board has waived the requirement for exhaustion of all administrative remedies afforded by existing law or regulations.

2.  The applicant requests, in effect, that the Army repay her student loans under the Student Loan Repayment Program (SLRP) as per her enlistment contract.

3.  The applicant states that there were annotations on her enlistment contract concerning the SLRP; however, no SLRP addendum was prepared.

4.  The applicant’s military records show that after having had prior service in the U.S. Army Reserve (USAR), she enlisted in the Army National Guard on           25 October 1993 in part for the SLRP in qualifying military occupational specialty (MOS) 76C/92A (Equipment Records and Parts Specialist) for $10,000.

5.  On 20 October 1994, the applicant enlisted in the USAR.  Her Record of Military Processing – Armed Forces of the United States, DD Forms 1966/2 and 1966/3, show that she was authorized for and enlisted for the SLRP in MOS 91C (Licensed Practical Nurse).  In addition to the normal documents involved in an enlistment, a Student Loan Repayment Program Addendum, DA Form 5261-4-R, is required to be prepared when an individual enlists for the SLRP incentive.  There is no evidence of record to show that one was completed at this time.

6.  The applicant was commissioned on 6 February 1996.

7.  On 22 May 2000, the SLRP office at Fort McCoy, WI notified the applicant that her DD Form 1966/2 did state that the SLRP was part of her incentive package, that the MOS in which she enlisted did qualify for the $20,000 student loan incentive, and that she appeared to have eligible loans for repayment.  However, their office could not pay the Student Loan incentive without the DA Form 5261-4-R.

8.  The SLRP provides for the repayment by the Government of a designated portion of any outstanding student loan(s) secured after 1 October 1975.  The loan amount to be repaid is 15 percent of the original balance of the loan plus accrued interest not paid by the Department of Education, or $500.00 plus the accrued interest not paid by the Department of the Education, whichever is greater.  Payments will be made for each year of satisfactory service in the Selected Reserve.  The maximum amount of loans against which the 15 percent is computed will not exceed $10,000.  This equates to a maximum annual repayment of $1,500 plus interest.  If the amount set for repayment is less than $500.00, then $500.00 becomes the calculated amount for repayment that year. 

9.  To be eligible for the SLRP incentive, a person must contractually obligate himself or herself to serve satisfactorily, must serve in a reserve unit for a full term of the contractual agreement and must further obligate himself or herself to continue to serve in the same component and the same MOS unless excused for the convenience of the Government.  Entitlement to the SLRP will stop if the soldier is separated from the Selected Reserve.  Each complete satisfactory year of service performed under this SLRP agreement establishes an anniversary date.  Any qualifying loan which is at least a year old may then be paid in accordance with the terms of this educational enlistment incentive.

10.  The Government will not make any payments to the soldier or reimburse a soldier if he or she pays off a student loan.  The Government will only pay the lending institution.

CONCLUSIONS:

1.  The evidence of record shows that the applicant enlisted in the USAR for the Student Loan Repayment Program incentive on 20 October 1994 in qualifying MOS 91C.  However, for an unknown reason the DA Form 5261-4-R was not prepared.

2.  It would be a matter of equity to show that a DA Form 5261-4-R was prepared on 20 May 1994 upon the applicant’s enlistment in the USAR.  That would allow her eligible loans for entitlement year 20 October 1994 – 19 October 1995 to be paid by the Government.

3.  In view of the foregoing, the applicant’s records should be corrected as recommended below.

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected by showing that a Student Loan Repayment Program Addendum, DA Form 5261-4-R, was prepared on 20 October 1994 upon the applicant’s enlistment in the USAR and properly processed.

BOARD VOTE:  

__fne___  __lem___  __hbo___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

			Fred N. Eichorn
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR2000047429	
SUFFIX		
RECON		
DATE BOARDED	20001212	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.	100.00	
2.		
3.		
4.		
5.		
6.